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Looking for a buy to let mortgage and not sure where to start. You are not alone. The rules are different to a normal residential mortgage, and it can feel like you have wandered into a maze shrouded in mist.
A buy to let mortgage is a loan specifically for buying a property you intend to rent out, not live in. Lenders look hard at the rent the property can generate, the costs involved and your wider financial position. That is where a good buy to let mortgage broker comes in.
At Coreco, we work with landlords and investors every day. Our job is to help you choose the right buy to let mortgage, explain what the lenders are really looking for and structure things around your long-term plans. Whether you are buying your first rental flat or adding to a busy portfolio, you get clear, tailored advice rather than a generic tick box approach.
Here is how a typical buy to let mortgage journey with Coreco looks, from first idea to tenants moving in.
We start with your goals. Are you buying for income, long term growth or both. Are you planning one property or building a larger portfolio. We talk through budget, deposit, likely rent and whether you should buy personally or via a company.
We source suitable buy to let mortgage options and secure an agreement in principle so you know what you can realistically offer when you find a property.
Once your offer is agreed, we handle the full buy to let mortgage application, manage the paperwork, liaise with the lender’s underwriters and arrange the valuation.
We work alongside your solicitor to keep things on track and keep you updated until your buy to let mortgage completes and you get the keys.
If you need introductions to letting agents, help setting a realistic rent or guidance on landlord insurance, we can point you in the right direction, so the property is ready for tenants.
As a whole of market buy to let mortgage broker, Coreco can access a wide range of lenders and products, including some that only deal through brokers.
We:
If your plans move into more specialist or commercial territory, we can introduce you to colleagues within the wider Coreco group who deal with complex and commercial property finance every day.
In short, you bring the ambition, and we bring the buy to let mortgage expertise, so your investment feels planned rather than left to chance.
A First time landlord can be forgiven for feeling a little imposter syndrome, which is perfectly normal. Many lenders treat first time landlords differently to seasoned investors. They might ask for:
We help first time landlords understand whether the numbers on their first buy to let mortgage really stack up. That means looking at local rental demand, likely rent, costs, potential void periods and how it all fits with your wider plans.
If you already have several properties, your needs are different. Lenders start looking at your whole portfolio rather than just the one property in front of them. They care about overall loan to value, rental coverage across the board, and how concentrated you are in certain locations or property types.
Coreco works with professional landlords to:
More landlords are now buying property through a limited company. A limited company buy to let mortgage is in the company name, usually supported by personal guarantees from the directors or shareholders.
Limited company buy to let mortgages can offer potential tax advantages for some investors, but rates, fees and criteria can differ from personal borrowing. Lenders have their own views on company structures, SIC codes, shareholders and how long the company has been trading.
We work closely with you and your accountant so that your buy to let mortgage set up matches your tax planning.
Each lender has its own rules, but common buy to let eligibility points include:
We match your profile to the right buy to let lender, so you do not waste time applying where you are unlikely to fit.
For a typical buy to let mortgage application you can expect to provide:
If buying through a limited company, you will usually need company documents as well. We give you a clear checklist up front.
On top of your buy to let mortgage, allow for:
A rental property that only works if nothing ever goes wrong is a risk. We help you budget realistically.
For buy to let mortgages, rental income is king. Lenders use rental stress tests to check that the rent comfortably covers the mortgage at a stressed interest rate. They may also factor in tax and void periods.
We help you:
This means you can see whether a potential buy to let stacks up before you offer.
Most buy to let mortgages need a larger deposit than a residential mortgage. The deposit size affects:
Buy to let mortgage products include:
The right product depends on your strategy, time horizon and risk appetite. We explain the pros and cons and make sure the product choice suits the investment, not just the headline rate.
Tax can have a big impact on your return:
We flag the key issues, but Coreco does not give tax advice. We strongly recommend speaking to an accountant alongside taking buy to let mortgage advice from us.
The buy to let world does not stand still. Rules around mortgage affordability, landlord responsibilities and Energy Performance Certificate ratings continue to evolve. There are also ongoing discussions about minimum EPC standards for rented property and changing local licensing schemes.
A big headline change for landlords is the Renters Rights Bill, now the Renters Rights Act. This legislation will phase in major reforms such as the end of Section 21 no fault evictions, a move towards more secure periodic tenancies and tighter rules around rent rises, property standards and discrimination against tenants on benefits or with children. All of this feeds directly into landlord strategy, how long you plan to hold a property and the way you manage risk and cash flow.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
We know you’re curious so we’ve picked out some of today’s best mortgage rates to give you an idea which lenders and interest rates could be available to you.
Latest mortgage best buys
Based on a property value of £300,000 with a mortgage of £180,000.
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Keep up to speed with the latest buy to let changes with our jargon-busting mortgage guides.
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Lisa T
"Another remortgage accomplished by the fabulous Louise and Stacey! 100% professional all the way yet so..."
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Mich
"Highly recommend especially if you're a first time buyer Fantastic guidance and extremely informative throughout the..."
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Fantastic guidance and extremely informative throughout the mortgage process for any questions I had. I couldn't recommend them enough. The process can seem daunting especially as a first time buyer, with lots of options to consider but they made everything really clear. Thanks Al and Cathy for all your help.
Carla
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